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Billionaire Carl Icahn Plans Shake Up of AIG, Halvorsen Reveals Yet Another Energy Bet, Plus Two Other Moves

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Individual investors can catch a glimpse of hedge funds’ equity positions by analyzing their quarterly 13F filings. The batch of 13Fs for the quarterly period that ended December 31 will be fully available on February 16, so investors will be able to take a look at the stocks hedge funds have put their faith in during the fourth quarter. However, one should remember that 13G, 13D, and Form 4 filings can be equally important for those tracking hedge funds’ moves, because they tend to disclose more up-to-date insights about some of these funds’ largest positions. Having said that, the following article will discuss four recent filings submitted by billionaires Carl Icahn, and Andreas Halvorsen, as well as two other hedge fund managers tracked by Insider Monkey.

At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).

In a Schedule 13D filing, Nathaniel August’s Mangrove Partners reported owning 8.18 million shares of Atlantic Power Corp (NYSE:AT), which constitute 6.7% of the company’s outstanding stock. That compares to the ownership stake of 6.19 million shares disclosed through the fund’s 13F for the September quarter. The 13D filing also disclosed that Mangrove felt the shares of the power company were undervalued and represented an attractive investment opportunity at the time of purchase, so let’s try to find out why Mangrove finds Atlantic Power’s shares so attractive at the moment.

Atlantic Power Corp (NYSE:AT) operates a fleet of power generation assets in the United States and Canada, primarily selling electricity to utilities and other large commercial customers under long-term power purchase agreements. PPAs are intended to reduce the company’s exposure to fluctuations in commodity prices, but the shares of Atlantic Power are still down by 34% over the past 12-month period. It is worth mentioning that the company’s PPAs will not begin to expire until December 31, 2017 at the earlier, so Atlantic Power is well-positioned to generate steady revenue in upcoming years. Even more to that, Moody’s Investors Services upgraded the company’s corporate debt rating to B1 from B2 in October 2015, which makes us believe that Atlantic Power is financially healthy as well. However, with the sale of its Wind Projects to one of Sunedison Inc. (NYSE:SUNE)’s yieldcos for $335 million in 2015, the company has less renewable energy projects in its portfolio, while its customer base has become more concentrated. 12 hedge funds from our database had stakes in the company at the end of September, amassing roughly 14% of its shares. Joel Ramin’s 12 West Capital Management holds a position of 7.31 million shares in Atlantic Power Corp (NYSE:AT) as of the end of the third quarter.

Nathaniel August
Nathaniel August
Mangrove Partners

Let’s head to the next two pages of this article, where we discuss three other freshly-submitted filings.

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